2024-07-02 09:19:53 ET
Summary
- Investing in dividend growers historically outperforms the market, while cutters underperform.
- 3M Company shows promising signs of recovery and growth despite its recent dividend cut.
- Strategic moves like the Solventum spin-off position 3M for a strong comeback and potential substantial returns.
Introduction
Dividend cuts aren't great. There's no doubt about it.
Investing in companies with consistent dividend growth isn't just great for income generation, but also a proven way of outperforming the market.
Since 1973, dividend growers and initiators have turned a $100 investment into $14,118. This implies a 10.4% CAGR. Dividend payers turned $100 into $8,756.
Then, there are dividend cutters and eliminators. These companies turned $100 into $73....
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For further details see:
3M: A Dividend Cutter With A Strong Buy Rating